Start your Business in Shenzhen: 4 Biggest Industries Analysis
Shenzhen, one of the major metropolises of China, is a young city with greatest developing momentums and countless business opportunities. In recent years, an increasing number of foreign companies and individuals started their businesses with this coastal city.
According to Shenzhen Government Online, there are 4 biggest key industries in Shenzhen: culture creativity, high-tech, modern logistics, and finance. Here we are going to analyze into those 4 pillar industries and to offer suggestions for businesses related.
1. Culture & Creativity Industry
In the past 2018, the annually added value of culture & creativity industry in Shenzhen reached 262.177 billion yuan (US$ 39.1 billion), which makes up more than 10% of city GDP. With preferably supportive policies and driving effect of leading cultural enterprises or activities, Shenzhen's cultural industry is booming than ever.
As a result, cultural industry parks are mushrooming; social media quarters are springing up, and university creative clusters are flourishing. The famed (Shenzhen) International Cultural Industries Fair is exhibited here every year, with exhibitors coming from more than 40 countries, attracting over 7 million's visitors from home and abroad.
In fact, this industry is growing vigorously all across China. According to the countries top 100 cutural and creative companies, those big deals are among professions of online games, visual media, music, live broadcasting, and recreation and so on, exactly catering to public's needs.
Specifically speaking, here are some business opportunities for this category:
Short videos. Since 2018, Chinese Apps similar to Snapchat are coming popular quickly. 2 famous representatives of them are Tiktok and Kuaishou, which have successfully drawn billions of public's attention. People flock to download this kind of user-generated short video Apps, peeping into others' lives while uploading their own videos. Investors of this field have received instant payback.
Live broadcasting. Akin to short videos, live broadcast is in good fashion among young Chinese. Huya and Douyu are 2 popular platforms for broadcasting. What's interesting is there are increasing numbers of foreigners in China who started to put themselves live, which are proved to be more attractive and thus profitable compared to those local's programs. Individuals do not need any investment to achieve thousands of fans in hours. Unlike foreign audiences, Chinese audiences are more prone to purchase gift for their loved broadcasters.
Mobile Games. The pace of life for Chinese is becoming more quickly. Many of us are in seeking of easy comfort after heavy works. Fortunately, their mobiles are perfectly suitable for this task. One can enjoy greatest games on his phone without opening his computer or sitting upright. Foreign Developers or investors can benefit from this huge consumer market.
2. High-tech Industry
The number of Shenzhen's enterprises in high-tech industry reached 14,415 in 2018, ranking the second nationwide. The electronic information sector is among the most prominent industries. Owning to a complete industry chain, this city has gained rich experience in personal training, researching, development and manufacturing for technological products.
Huawei is a good example. The fact of its being banned by Trump's administration has in return proved its almighty impact on telecom and mobile industries. From a small company built from scratch to an internationally major corporation playing a decisive role, Huawei is not alone. Over the past decades, Shenzhen has witnessed so many technology companies like Huawei rose from totally nothing.
In Shenzhen, there are some business opportunities in high-tech industry:
- Starting up company. Companies which are meeting the requirement for identification of high-tech enterprises can get hefty subsidies on company's revenue, cost or other related projects.
- Artificial Intelligence. Shenzhen continues to push AI clusters forward, by building innovation carriers and organizing technology projects with the help of international AI teams. Any efforts facilitating this activity could win official favour and a great many of cooperative chances.
- Procurement locally. Electronics or any other related products manufactured here are relatively low-cost because of the above reasons. Meanwhile, costs can be further reduced for inexpensive human labor work.
- Exporting high-end electronic components. Although China's electronics technology has been remarkably improved, Chinese electronic manufacturers are still in need of high-end components, most of which are imported from foreign countries, to meet their needs for higher levels of products.
3. Modern Logistics
Logistics industries contributed a added value of 254.158 billion yuan (US$37.9 billion) in the past 2018, constituting 10.49% to the Shenzhen's GDP. Benefiting from its unique geographical position and vigorous exporting industry, international logistics are thriving unprecedentedly.
Foreigners are not likely to have business directly connected to logistics industry, but there are some advantages for it:
- Flexible shipping solutions. It's easy for anyone to send cargos out of here, no matter by air, or by ship. There are countless shipping agents in Shenzhen who offer power price and intensive services. Hence you will not get vexed on how to send goods back.
- Better market probing. Sellers now have a quick approach to probe the Chinese market by sending their products or samples all across China. With the help of advanced logistics network, one can easily establish his distribution system for most of his products.
In 2018, financial industry had a added value of above 300 billion yuan (US$44.8 billion), accounting for 12.7% of GDP of Shenzhen. As one of the major financial centers in China, Shenzhen is putting its Qianhai Cooperation Zone into a pilot project for the opening up of China’s financial industry with comprehensive fin-tech ecosystem.
In Shenzhen Qianhai Free Zone, according to Qianhai Official, steps to establish a foreign-funded enterprise are substantially simplified. Meanwhile, policies for the stock market are becoming more preferable for foreign investors.
Shenzhen is a city full of business opportunities. Its development on all industries represents its growing power on technology and influence power, as well as its great demand for supporting resources and capital. Foreign investors or individuals can find profitable projects based on this city's booming industries.